Hyperliquid (HYPE) is approaching an important point after buyers defended the $78 area while the protocol continued reducing its token supply through another large burn. The combination of a key technical support level and ongoing token burns has placed HYPE under renewed market attention.
Hyperliquid is currently trading at $78.90, with a 24-hour trading volume of $1.76 billion and a market capitalization of $19.86 billion. HYPE has fallen 1.35% over the past 24 hours, while its market dominance stands at approximately 0.75%.
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HYPE Eyes $90 Above Key Resistance
Despite the daily decline, the $78 area remains important because buyers have defended this level twice. Crypto analyst Crypto With Gopal highlighted the formation of a possible double-bottom setup around the support zone.
A double bottom can indicate that selling pressure is losing strength after repeated attempts to push the price lower. However, the pattern still requires confirmation. According to the analysis, HYPE needs to reclaim the $84 resistance to strengthen the bullish setup.
A sustained move above $84 could shift attention toward $90, making the zone between $78 and $84 particularly important for HYPE’s next short-term move.
Hyperliquid Burns 32.77K HYPE Worth $2.65M
In addition to the technical aspect, Hyperliquid keeps burning its native token in order to decrease its supply. According to on-chain data, Hyperliquid burned about 32,770 HYPE coins worth approximately $2.65 million during 24 hours.
The tokens were purchased at an average price of approximately $81.01 before being permanently removed from circulation. The latest transaction takes the reported lifetime HYPE burn to around 48.57 million tokens.
In terms of current values, the amount of tokens burned permanently is worth approximately $3.82 billion. Moreover, the burned amount is equivalent to 4.86% of HYPE’s maximum supply.
The news is significant in terms of token economics, which are connected to the performance of the protocol in question. Thus, further burnings and purchases can contribute to decreasing the total amount of tokens. However, the impact of token burns on its price remains dependent on its demand and market situation.
HYPE Technical Structure Leaves Room for Higher Targets
There is also the issue of how the general chart pattern affects the reasons why market players should be on the lookout for HYPE. Elliott Wave pattern analysis indicates that the token may have undergone a correction at $50.70 following a previous high of roughly $76.67.
In accordance with this, the downtrend off the high in June can be characterized as a complex correction. The importance of the $50.70 level lies in its potential to be the end of Wave (iv) in a bearish pattern.
However, the first major test would be the previous high, which is at about $76.67. Since HYPE has already made a move off that price, there will be more confirmation if the token breaks out to stay on top of it.
The projected upside objective is at $99.42, while the extended target is at $116.57.
Triangle Scenario Keeps $50.70 in Focus
However, not all technical analysis necessarily indicates an impending breakout. Another possibility is that HYPE could develop a larger triangle formation and remain within a wider range before making its next decisive move.
Under this alternative scenario, the recent downturn may be considered as part of a much larger correction pattern. Consequently, HYPE may require additional time to gather strength for the next push higher.
Consequently, the $50.70 support level remains very important from the perspective of the bullish technical outlook. A breakdown of this level would cast doubt on the current Elliott Wave analysis.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
